EQUITIES: E-Mini S&P Breaks Below 20- and 50-Day EMAs

Eurostoxx 50 futures have reversed course and this has resulted in a break of both the 20- and 50-day EMAs. The move lower highlights the start of a corrective cycle, paving the way for a pullback towards 4805.47 initially, a Fibonacci retracement. Initial firm short-term resistance has been defined at 4998.00, the Sep 3 high. A break of this level would reinstate the recent bullish theme. A bullish theme S&P E-Minis remains intact, however yesterday’s sharp sell-off signals the start of a corrective cycle. Price has traded through the 20-day EMA and pierced support at the 50-day average, at 5519.81. A clear break of the 50-day EMA would signal scope for a deeper retracement towards 5459.75, a Fibonacci retracement. Key near-term resistance has been defined at 5669.75, the Sep 3 high. A breach of it would be bullish.

• Japan's NIKKEI closed lower by 1638.7 pts or -4.24% at 37047.61 and the TOPIX ended 99.78 pts lower or -3.65% at 2633.49.
• Elsewhere, in China the SHANGHAI closed lower by 18.701 pts or -0.67% at 2784.278 and the HANG SENG ended 194.15 pts lower or -1.1% at 17457.34.
• Across Europe, Germany's DAX trades lower by 144.96 pts or -0.77% at 18602.08, FTSE 100 lower by 65.77 pts or -0.79% at 8232.95, CAC 40 down 61.88 pts or -0.82% at 7513.22 and Euro Stoxx 50 down 52.6 pts or -1.07% at 4859.92.
• Dow Jones mini down 81 pts or -0.2% at 40937, S&P 500 mini down 21 pts or -0.38% at 5521, NASDAQ mini down 112.75 pts or -0.59% at 18894.25.